Securities Law Updates | New Proposed Legislation
March 16, 2010
Legislation to End Need for Taxpayer Bailouts of “Too Big to Fail” Corporations Filed in Senate
Ending Taxpayer Bailouts By Making Wall Street Pay Act of 2010
S. 3052, 3/1/2010
The Ending Taxpayer Bailouts By Making Wall Street Pay Act would require huge corporations to pre-pay into a fund that, in cases of financial crisis, would help wind down failed corporations in order to minimize collateral damage to the economy.
According to the bill’s sponsor, U.S. Senator Robert Menendez (D-NJ), the proposed legislation would effectively end the need for future taxpayer bailouts of “too big to fail” corporations.
Once enacted into law, the bill would require very large companies that pose risks to the whole economy to insure against the possibility of their failure. Risky firms would have to pay into…
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View a PDF of the proposed legislation
